If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Marketwatch)   World debt reaches a record $164 trillion. Which raises the question - Who gets to foreclose on the planet?   ( marketwatch.com) divider line
    More: Fail, global debt, United States, elevated government debt, Republic of China, United States public debt, Economics, IMF, International Monetary Fund  
•       •       •

721 clicks; posted to Business » on 20 Apr 2018 at 3:35 AM (4 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



58 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest


Oldest | « | 1 | 2 | » | Newest | Show all

 
2018-04-20 01:35:05 AM  
The Crimson Permanent Assurance Corporation already has the contract.
 
2018-04-20 01:58:29 AM  
Vogons.

/Talk about poetic justice...
 
2018-04-20 02:47:34 AM  
A Perfect Circle- The Doomed (Lyrics)
Youtube S_y6n5pMA7U
 
2018-04-20 03:44:15 AM  
Who gets to foreclose on the planet?

i.ytimg.comView Full Size
 
2018-04-20 04:00:01 AM  

HighOnCraic: Vogons.

/Talk about poetic justice...


img.fark.netView Full Size
 
2018-04-20 04:03:31 AM  

Harry_Seldon: Who gets to foreclose on the planet?

[i.ytimg.com image 480x360]


That's just what THEY want Kodos and Kang to think.....

img.fark.netView Full Size


/we do, we do
 
2018-04-20 04:11:09 AM  
If the world owes it, who does it owe it to?
 
2018-04-20 05:07:49 AM  
Vogons
 
2018-04-20 05:35:12 AM  
vignette.wikia.nocookie.netView Full Size
 
2018-04-20 05:52:34 AM  

Cormee: If the world owes it, who does it owe it to?


farm4.static.flickr.comView Full Size
 
2018-04-20 06:04:16 AM  
img.fark.netView Full Size
It's time to party like it's 1789!
 
2018-04-20 06:08:26 AM  

Hobodeluxe: [YouTube video: A Perfect Circle- The Doomed (Lyrics)]


Thanks for the reminder.  New album today!
 
2018-04-20 07:33:08 AM  
Y'all missed the obvious:

ichef.bbci.co.ukView Full Size
 
2018-04-20 07:36:58 AM  
Can we just move in the middle of the night and change our names? It will be hard for us to be found then.
 
2018-04-20 07:38:10 AM  
A handful of old white guys, and a woman too, maybe.
 
2018-04-20 07:40:45 AM  
I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.
 
2018-04-20 07:45:53 AM  

Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.


In 6 months, we'd have a world debt of $165 trillion. All owed to the same people.
 
2018-04-20 07:50:51 AM  

Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.


The change in actual resources on the planet would be negligible.  The loss of trust in the ability to trade representational value in place of actually physically trading those resources would be devastating for damn near everyone.  People who are currently subsistence farmers or hunter-gatherers might not notice much of a change.
 
2018-04-20 07:51:33 AM  
img.fark.netView Full Size
 
2018-04-20 07:58:31 AM  

OtherLittleGuy: Y'all missed the obvious:

[ichef.bbci.co.uk image 256x144]


this is the moment when i get a real sense of job satisfaction
 
2018-04-20 08:13:56 AM  

BafflerMeal: HighOnCraic: Vogons.

/Talk about poetic justice...

[img.fark.net image 850x850]


Vorlons **
Shadows would also be an acceptable answer, however they're more of a Hostile Take Over transaction than Banking Foreclosures.
 
2018-04-20 08:15:18 AM  

KerplunkSploosh: Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.

In 6 months, we'd have a world debt of $165 trillion. All owed to the same people.


Remember who that money is owed to. Mostly corporations and private citizens like you and me in our retirement funds. Erasing that would be disastrous for many.
 
2018-04-20 08:34:38 AM  

KerplunkSploosh: Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.

In 6 months, we'd have a world debt of $165 trillion. All owed to the same people.


its like I wonder what the assets of the entire world would be valued at, you know, uncovered minerals and resources and all, hell the ones below North Korea are worth a % of that debt alone.

Debts supposed to be about leveraging money and value.  Sure I might go 30 grand into debt, but my 70k a year job over what would have been a 30k a year job means I would barely notice paying that debt off over 10 years.

The issue is when a bunch of people take out a bunch of debt on other peoples names, leave the corpse to rot, and destroy millions or billions in value while taking free flowing cash out of the moving economy and into a bank account where it can be used to buy back shares for some executives bonus this year.  Specifically screwing over public pension holders.
 
2018-04-20 08:41:07 AM  
img.fark.netView Full Size
 
2018-04-20 08:51:32 AM  
Oh noes!¡¡! I'm super scare of big numbers and my understanding of debt have changed since I was a "super deep" 14 year old, do this is the worst thing ever!!¡!¡!

/s
 
2018-04-20 08:58:39 AM  
Sovereign defaults are rarely planned or controlled.

Most governments with a large sovereign debt have to borrow more money at current rates just to pay the interest on their old debt.  And because they have to borrow money just to stay afloat, they are forced to sell bonds at any yield they can get.  It is a matter of survival.

When interest rates are low and there are a lot of investors out there who want those bonds, the yield stays low, and a large amount of debt doesn't seem to hurt that much.  But those low rates aren't locked in because the government has to constantly borrow more to pay off existing interest.

And when interest rates eventually go up, the bond yields that investors are looking for goes up as well, and suddenly the government's finances look much worse then they did before because it has to pay off old low interest debt with new higher interest debt.

When investors start to get nervous, less people want the bonds, and the bond rates have to go up further to entice them.  But that means that the government is now paying a higher rate on its debt than it was before, and the things making investors nervous are now making them even more nervous.

The government can start to print money to try to borrow less, but that causes inflation, and that causes rates to go up, which means bond yields have to increase, plus investors get even more worried about the government's finances, driving yields up again.

This creates a death spiral of rising inflation and bond yields driving up the cost of existing debt, which seemed fine when rates were low and investors happy, to suddenly unsustainable levels.  Eventually you just can't borrow enough to cover your debt, and you default.

So are defaults in anyone's interest, no pun intended?  No, but they happen anyway when the unusual situations keeping your debt cheap changes, the investor herd gets spooked, and the stampede starts.
 
2018-04-20 09:07:47 AM  
Get rid of shareholders.  They are pancreatic cancer.  Tie corporate profit to wages.  Everyone wins.
 
2018-04-20 09:14:39 AM  

Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.


There is in fact around the web a growing buzz of discussion about the potential effect of a 'debt jubilee', modeled on that decreed by tyrants in times of yore. Everything erased and reset to zero.

And by the way, the $164tn figure pulled out of a fat ass somewhere is mostly guesswork; I've heard anywhere from $500.tn to a figure approaching a - get ready for it - quadrillion. It is the quintessential case study of the banking racket. And it's going on hell-for-leather as we engage in these mild exchanges.
 
2018-04-20 09:21:22 AM  
The Stark Fist of Removal:

img.fark.netView Full Size
 
2018-04-20 09:40:54 AM  
7 or 8 of the wealthiest people on the planet.
 
2018-04-20 09:46:27 AM  

Invincible: KerplunkSploosh: Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.

In 6 months, we'd have a world debt of $165 trillion. All owed to the same people.

Remember who that money is owed to. Mostly corporations and private citizens like you and me in our retirement funds. Erasing that would be disastrous for many.


This.
 
2018-04-20 09:50:18 AM  
Debt is money.
No debt = no money
Want to eliminate debt and go back to the barter system? Fine, but the world is going to have to shed about 6 billion people that are kept alive by the market velocity created by debt and fiat currency.
 
2018-04-20 10:31:41 AM  
My guess is a Jew.

/nttiawwt
 
2018-04-20 10:34:49 AM  

Cormee: If the world owes it, who does it owe it to?


I mean, the facile answer is "To themselves", to which the obvious response is "well can't we just forgive it then?"

The problem is to ask what it means to owe money to yourself (specifically your future self).  Presumably you want to retire at some point, for the sake of argument let's say 65.  So you owe your 65 year old self <amount of annual expenditure * (lifespan - 65)>.   Can you forego payments on that?  Sure.  Can you do it without consequence?  No, the consequence is that your 65 year old self will owe, say, your 70 year old self <annualcost * (lifespan - 70)>.

The debt owed is future productivity brought forward and consumed today.  There are three ways to get rid of that debt:

1) Produce things in the future and forego (lots of) consumption by giving the production to the debt holders (i.e. repay the debt)
2) Inflate the currency so that you can do 1) but that the amount of consumption that needs to be given up is negligble
3) Don't repay the debt.

Place your bets accordingly
 
2018-04-20 10:35:42 AM  

KerplunkSploosh: Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.

In 6 months, we'd have a world debt of $165 trillion. All owed to the same people.


You mean, after seeing all the debt owed to them being erased, they would loan money to those same people again?  That doesn't seem very smart.
 
2018-04-20 10:50:26 AM  
i.ytimg.comView Full Size
 
2018-04-20 10:52:50 AM  
Also GIS for sprunger without Futurama in the search.

img.fark.netView Full Size
 
2018-04-20 11:17:50 AM  

HighOnCraic: Vogons.

/Talk about poetic justice...


Dammit. How did I miss this last night.
 
2018-04-20 11:57:38 AM  
"Who gets to foreclose on the planet"

Rich people.
 
2018-04-20 12:13:38 PM  

Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.


Haven't been watching Mr. Robot, have you?
 
2018-04-20 12:16:26 PM  
I see most of the usual trite answers have been visited, except for the Ferengi, so I'll just add the Pierson's Puppeteers.  Or should that be the Outsiders?
 
2018-04-20 12:17:45 PM  

madgonad: Debt is money.
No debt = no money
Want to eliminate debt and go back to the barter system? Fine, but the world is going to have to shed about 6 billion people that are kept alive by the market velocity created by debt and fiat currency.


Meh.  I prefer Volkswagen currency.
 
2018-04-20 12:18:12 PM  
But what is the sum total of assets?
 
2018-04-20 12:23:41 PM  

Nicholas D. Wolfwood: Smoking GNU: I wonder what would happen to the global economy if all that debt were to be erased from all records, all in one go.

Haven't been watching Mr. Robot, have you?


Only the first season.
 
2018-04-20 12:42:57 PM  

JolobinSmokin: Also GIS for sprunger without Futurama in the search.

[img.fark.net image 413x594]


Sprunger?  I don't even know her...
 
2018-04-20 01:18:55 PM  

I dont want to be on this planet anymore: The Crimson Permanent Assurance Corporation already has the contract.


if Banksters had their way every human on the planet would be in debt...except the Banksters.
 
2018-04-20 01:20:18 PM  

Monkeyfark Ridiculous: Cormee: If the world owes it, who does it owe it to?

[farm4.static.flickr.com image 500x346]


"...to whom is it owed?"

/ Zieg grammar
 
2018-04-20 01:45:56 PM  
SomeAmerican:

...The government can start to print money to try to borrow less, but that causes inflation, and that causes rates to go up, which means bond yields have to increase, plus investors get even more worried about the government's finances, driving yields up again....

Absolutely incorrect.
The money the .gov prints no longer finds its way intot he physical economy. This is a common trope of the ignaramous internet bloviators. The money is created as pixels and goes to banks to lend. Since the crash, lending has been squeezed to within an inch of it's life. The banks, since the laws were relaxed to allow it, now invest the money. It never gets to mainstreet, ergo, no inflation or dogs and cats sleeoing together or Nazis with rayguns from the Moon coming to kill us and eat us.
Take your keyboard and go out and play.
Adults are talking.
 
2018-04-20 02:26:12 PM  
Here's where it gets truly frightening, boys and girls:

Most of that debt, public and private, is implicitly backed by the future tax payments and profit streams made possible by human workers and taxpayers. Put bluntly, you're the collateral for all the debt.

Will you be foreclosed on, as it were? Not while you can service the debt, no. The Creditors would rather have the money.

It's when a machine can do any useful task better than any human, and today's wage and debt-peons are no longer useful as a source of tax and interest/dividend payments, that foreclosure will be your best case scenario. If you're young and attractive enough to be interesting to the Inheritors as a "pet," maybe you'll fetch something at auction. As for me and most other Farkers (no offense), someone will have to be paid to haul us away to be scrapped in whatever fashion is most cost-effective.
 
2018-04-20 03:24:00 PM  
Apple's debts are north of $100 billion.
Of course, they're also sitting on a pile of cash three times that size, which is only set to grow even more.
 
Displayed 50 of 58 comments


Oldest | « | 1 | 2 | » | Newest | Show all


View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking

On Twitter





Top Commented
Javascript is required to view headlines in widget.
  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report